Why is France important to Australia

For 30 billion euros: Australia orders submarines from France

It is the largest arms deal in Australia's history. The country orders submarines from France worth 30 billion euros. A German competitor goes away empty-handed.

Australia closes the largest arms deal in the country's history. The government in Canberra today signed a contract with France to supply twelve submarines valued at more than 30 billion euros. The submarines are intended to help Australia secure its strategic influence in the region. The German ThyssenKrupp group missed out on the deal.

At a ceremony in the capital, Canberra, Australian Prime Minister Scott Morrison described the deal with the French defense company Naval Group as "the largest investment in defense in peacetime".

France's Naval Group prevailed against ThyssenKrupp

The Naval Group had already been awarded the contract to build the submarines in 2016. The French armaments company, which was still called DCNS at the time, thus prevailed against its German competitor ThyssenKrupp, among others. The French state holds a good 62 percent of the Naval Group.

The submarines are to be delivered from the beginning of the 2030s. They are intended to replace the outdated inventory of the Australian Navy. The submarines are built in Australia. Around 2,800 jobs are to be created in Adelaide in the south of the country, and around 500 people will be employed in France.

French Defense Minister Florence Parly called the arms deal in Canberra a sign of trust between the two countries. This gives Australia a strategic "advantage over the entire region".

In the waters north and east of Australia, China, the United States and regional powers are vying for influence. Beijing lays claim to the South China Sea and has created several artificial islands there. Washington fears that China wants to secure influence over the important shipping route.